UBS CEO: Switzerland is more important to America than China

Is Switzerland more important to
America than China? Well, it depends on what is important to
you.

As Chairman of the Swiss American Chamber of Commerce, I believe
that the relationship between
Switzerland and the US offers a model for how cross-border
investment can strengthen economic ties between nations, creating
much-needed jobs and adding to global prosperity through
financial partnership. Our government also understands this too,
and I am sure that this message will be reinforced when Federal
Councillor Ueli Maurer, Head of the Federal Department of
Finance, and Federal Councillor Johann Schneider-Ammann, Head of
the Federal Department of Economic Affairs, Education and
Research, visit the US next week.

Meanwhile, the whole world is watching America and its new
President to try to understand where his administration is going
in terms of economic and trade policies and the impacts they
might have on its trade partners. Early talk of border
taxes and trade tariffs has stoked concern about the risk of
trade wars and a so-called "new era of US protectionism."

President Donald Trump put it this way: "There are two simple
rules: buy American and hire American." For some countries,
that's worrying. For others, it’s a great opportunity -- one that
Switzerland is already embracing.

So who really matters to America when it comes to jobs?
Well, if you look at the net figures (employment in the US
by foreign companies minus US-created jobs in that country), then
Switzerland creates more American jobs than China. That’s
370,000 net jobs in America’s favor according to the latest
figures*. Globally, Switzerland ranks second only to Japan in the
net jobs it creates for America. And if you add in all the jobs
supported by exports to Switzerland, the total soars to more than
700,000.

Switzerland is a minnow on the world stage – a small, landlocked
country of about 8 million people, accounting for less than one
percent of global gross domestic product. We live in the
popular imagination as a land of chocolate, mountains and cuckoo
clocks. But you won’t find much in the way of lederhosen,
yodeling or bank secrecy anymore – perception lags behind the
reality. And the reality is that in terms of American jobs,
Switzerland is a true heavyweight. And these jobs are well
paid, with American workers in Swiss-owned companies earning an
average of more than $100,000 a year, higher than jobs from any
other major country*.

Switzerland is the seventh-largest foreign investor in the US,
and Swiss investments are growing at the second-highest rate of
any country*. It's a two-way street, with about a fifth of global
investment in Switzerland coming from the US.That helps explains
why Switzerland has added more jobs to the US economy than any
other major country since 2008, so that Swiss companies now
contribute more than 460,000 jobs, spread across every state*.
Swiss companies are among the top three foreign employers in more
than half a dozen states from New Jersey through Arkansas to
California, with New Mexico, North Dakota and Louisiana showing
the fastest growth.

Swiss companies are prominent in manufacturing in chemicals, food
and electronics, and in services like banking and insurance.
World-class companies including Nestle SA, Novartis AG, ABB Ltd.,
Credit Suisse Group AG and UBS Group AG have important US
operations.

Rob
Ludacer

Given that the most famous Swiss-American is Albert Einstein,
maybe it is not so surprising that Switzerland is the biggest
foreign investor in research & development in the US,
accounting for a fifth of total foreign investment*.
R&D is vital for tomorrow’s jobs – recent research
estimated that for every one percent increase in R&D, America
would benefit from a .38 per cent increase in jobs∗∗.
And Swiss companies are the number one investor in high-value
growth industries such as pharmaceuticals and medicine.

Of course, while Switzerland
matters to the US, the US in turn is absolutely vital to
Switzerland. US companies export goods and services worth
more than $50 billion to Switzerland annually. And exports
are growing, both ways. We value our economic relationship.
We also value the historical and cultural ties, underpinned
by our shared values. In addition, our two governments have
agreed to co-operate more in vocational education and training.
In Switzerland we have a long and successful tradition of
apprenticeships.

Extending the partnership between
Switzerland and the US will help grow the economic ties to the
mutual benefit of both countries. With more than 500 Swiss
companies providing jobs for Americans already, we can expect
further investment. What's good for Switzerland is also good for
America.

*Data drawn from the report, “Switzerland’s Economic Footprint in
the United States (2017)”, underlying data from the U.S.
Department of Commerce Bureau of Economic Analysis (bea.gov)